A payday loan is essentially a short-term cash advance on your next paycheck, and it is often meant to be used to help pay for small but urgent expenses. However, despite the fact that these loans are usually taken out for small amounts, they also happen to be one of the most expensive forms of lending out there, with some APRs even going as high as 400%.
These loans tend to come with an extremely short repayment period, with several payday loan lenders often requiring you to repay the borrowed amount in full. Aside from that, they come with very minimal eligibility requirements, which means that they are available to borrowers with bad credit. And once you’re approved, you can typically expect your borrowed funds to be deposited in your account within 24 hours.
5 Best Online Payday Loans
1. iPaydayLoans
iPaydayLoans is a free online lending service that is designed to connect borrowers with some of the top payday loan companies in the market that are able to quickly review and approve your loan in a matter of hours.
The platform allows borrowers to access up to a maximum of $5,000 and conveniently compare loans based on interest rates, fees, terms, and other factors, which provides you with the freedom to choose your own preferred lender that works best for your financial situation.
They also offer an extremely time-efficient application process, as it only takes a few minutes to fill out the online form, at which point you can expect to receive offers from their partner lenders almost immediately.
Furthermore, all lenders in the iPaydayLoans network do not require you to put up any collateral for your payday advance, and there are no additional or hidden fees to worry about, either. This makes iPaydayLoans one of the best options for first-time borrowers in need of a service that can provide them with clear transparency from start to finish.
Secure an instant payday loan using iPaydayLoans today!
2. WeLoans
WeLoans is an online credit broker that links borrowers with a network of direct lenders that offer cash advance loans online, even to those with a bad credit rating. The company’s loan application process is also fairly straightforward, as it only takes a few minutes to fill out the online form that allows you to apply for loans starting as low as $50 and going up to a maximum of $5,000.
Once submitted, the form is automatically distributed to their lending network, and within minutes, you can expect to receive multiple offers. Once you accept an offer, you can expect your funds to be processed and deposited into your account within 24 hours. Plus, the benefit of using WeLoans is that their partner lenders are available to approve and transfer funds even outside business hours, which ensures that you always have access to financial assistance right when you need it.
Access a cash advance loan anytime with WeLoans!
3. CocoLoan
CocoLoan is a highly reputable payday loan service that offers borrowers one of the most extensive networks of payday lenders in the current market, all of whom offer a wide range of instant cash advances of up to $5,000 to borrowers in need of fast funding to cover urgent expenses.
All loans are processed fast and securely, with the entire process handled online in order to ensure that there are no unnecessary wait times. On top of that, the service only partners with reputable lenders, which means that even first-time borrowers can rest assured of a fair and transparent borrowing experience with no fear of being unexpectedly charged hidden or additional costs like originator fees.
Furthermore, all approved loans are processed within the same day, and since the platform uses high-end encryption protocols, any information you submit will remain confidential.
Find and compare the best payday lenders with CocoLoan now!
4. US Bad Credit Loans
If you happen to have a bad credit history, then US Bad Credit Loans is an excellent online lending platform that can grant you access to payday loans of up to a maximum of $5,000 with guaranteed approval. And the reason for this is because their panel of 100+ lenders is usually more interested in assessing your level of affordability than your creditworthiness.
This means that in order to successfully qualify for a loan, you need to be employed or own a business and have a steady income stream. However, if you fulfill these requirements, you can expect a relatively easy and smooth borrowing process that will allow you to receive your approved funds within the same day or the following day, at the latest. Plus, given that all the lenders within their network have been properly vetted, there is zero risk of being defrauded or scammed.
Get a payday loan even with bad credit at US Bad Credit Loans!
5. US Installment Loans
US Installment Loans is another lending platform that helps borrowers partner with reputable and licensed lenders. Their entire loan process is transparent and free of charge from start to finish, as well as available for use 24/7, which means that you can apply for a loan and receive a decision on your application in a matter of hours, if not minutes. The company also caters to borrowers with bad credit, which ensures guaranteed approval for payday advance loans up to a maximum of $5,000.
Additionally, the benefit of using US Installment Loans is that their lending network offers various types of loans, with most of them being able to provide installment loans for bad credit that can be repaid monthly and typically extend as high as $5,000. However, do keep in mind that your ability to qualify for this loan will usually depend on your individual financial situation.
Utilize US Installment Loans to get paycheck loans today!
How Do Payday Loans Work?
Payday loans are essentially short-term cash loans that are usually due by the time your next paycheck arrives, hence the name. Payday loans tend to range between $100 and $1,000, but this can vary depending on state legal maximums.
The average loan term is typically two weeks, with APRs often set at 400% or higher, and when it comes to repayment, you will usually need to leave the payday lender with a check, which they will cash once your next paycheck arrives.
Alternatively, you can grant electronic access to your bank account, which then automatically deducts the money owed on payday. And if you are unable to repay your cash advance, you will usually have the option to roll it over so that it is extended, but do keep in mind that doing so means that the fees will keep on accumulating.
Can I Get Payday Loans for Bad Credit?
Even if you have a bad credit rating, you can still be approved for a payday loan because, unlike most other loan products, this form of lending doesn’t solely rely on your credit score. Most payday lenders are open to considering other factors like your income and employment history when making the decision to approve your loan request.
This means that as long as you can prove you have a steady source of income, there is a high chance that you will still be able to receive your cash advance loan within 24 hours of submitting your application. However, it is important to keep in mind that the lower your credit score is, the more likely you are to end up having to pay higher interest rates. In most cases, you can at least expect to pay a $15-$20 fee for every $100 you end up borrowing.
Can I Get an Online Payday Loan With No Credit Check?
It can often be very difficult to find a legitimate lender that can offer loans without conducting a credit check. However, unlike most traditional lenders, the benefit of borrowing from payday lenders is that they will usually conduct a soft credit check rather than a hard credit check.
A hard credit check usually involves the lender reviewing every detail on your credit reports, such as your repayment history, late payments, and past defaults, while a soft credit check only involves reviewing your credit report at the most basic level, with the main intention being to verify your identity. This means that you can still expect to be approved for a payday loan, regardless of your credit standing.
What Documents Do I Need to Obtain a Payday Loan?
If you intend on applying for a payday loan, the standard requirements that you will need to present include a government-issued photo ID, proof of an active checking account, proof of a steady income stream like a recent pay stub, banking information like statements, as well as a valid Social Security Number or Individual Taxpayer Identification Number.
Also, depending on the payday lender, they may require more personal or financial information, but in most cases, they will usually let you know what extra details they need after they have already reviewed those initial documents.
How to Get a Payday Loan?
You can easily secure a payday loan by using one of the five lending services we’ve listed above. Each of them comes with a simple online loan application process that should only take a few minutes to complete.
You will typically be able to apply for a cash advance loan up to a maximum of $5,000, and once you submit your application, the information will be distributed to a panel of lenders, and if approved, you will have the opportunity to compare various loan offers and choose the one whose rates and terms best suit your preferences.
It’s also important to keep in mind that you are never obligated to accept an offer and that before you do accept one, you should make sure that you will be able to make the repayment. Once you accept the paycheck loan offer, you can usually expect the funds to be deposited in your account within 24 hours.
Are Payday Loans Legal?
Yes, payday loans are legal. However, they are heavily regulated by the Consumer Financial Protection Bureau (CFPB), with the Obama Administration having passed rules back in 2017 to protect consumers from debt traps.
For instance, all payday lenders are required to assess a borrower’s ability to repay a loan as well as their ability to still meet their everyday living expenses before handing out a loan. They also require all lenders to provide written notice before collecting any money from a borrower’s bank account.
What Happens if I Can’t Repay a Payday Loan?
It depends on the payday lender in question as well as the state you reside in, but you can often expect to be charged a late penalty fee. And while most payday loans usually come with the option to roll over the payment and extend the due date, they usually require you to pay an extra fee as well.
You should also keep in mind that multiple failed attempts to obtain payment can end up potentially triggering bank fees against you. And in the event that the lenders cannot collect the money owed to them, they could end up referring your case to a collections agency that may launch legal action against you.
Alternatives to Payday Loans
1. Bad Credit Loans
If you have a credit score that is lower than 620, then you can always apply for a bad credit loan. These lenders will usually be open to approving your loan request, even if you happen to have a high debt-to-income ratio, and they even offer fast funding, with the money often being deposited within a day or two. However, any missed repayments will usually be reported to the credit bureaus, which can negatively impact your credit score even further.
2. Personal Loans
If you happen to have a good or excellent credit rating, then taking out a personal loan from a bank is often the more viable option to consider. They are more affordable than payday loans and typically allow you to borrow for much longer periods of 2–5 years, with some lenders even willing to go as high as 7 years. They also come with longer repayment terms, which means cheaper monthly payments.
3. Cash Advance Apps
If you have a predictable income stream and are looking for a small paycheck advance, you can borrow from a cash advance app, which can offer you up to a maximum of $500. These apps can also provide the funds within a few hours to a few days, with most of them requiring a small fee to speed up the processing time. Plus, they typically charge borrowers zero fees, with the only exception being that they may request a voluntary tip for the service.
4. Family Loans
Borrowing from family and friends can often be a great way to get cash without having to pay interest, especially if you‘re close enough to the person you intend to borrow from. It also allows you to avoid having to deal with any lengthy red tape or added risk to your financial security. Plus, the benefit of borrowing from someone you know means that you can negotiate repayment terms and conditions that best suit your financial situation.
FAQs:
1. Is a Payday Loan Secured or Unsecured?
Most payday loans are unsecured, which means that you are not obligated or required to put up any form of collateral to secure funding, as you would normally do in a pawn shop.
2. Are Payday Loans Fixed or Variable?
Payday loans will usually need to be repaid in one lump sum as soon as your next paycheck arrives, and as such, the interest rates are typically fixed. In fact, some lenders simply charge a fixed flat fee that often ranges between $10 and $30 for every $100 that you borrow.
3. How Long Do Payday Loans Remain in the System?
Traditional loan records can usually be kept for up to a maximum of 10 years by the three main credit bureaus, but most payday lenders do not tend to report to the credit bureaus, even when it comes to overdue repayments.
4. Can I Acquire a Payday Loan if I Don’t Have a Bank Account?
Yes. While it is normally recommended for borrowers to have a bank account, most payday lenders are open to a prepaid card account being sufficient enough for you to be eligible for funding.
5. Is It Possible to Get My Payday Loan Debt Forgiven?
It is extremely rare for a payday loan to be written off because most lenders stand to make a significant amount of money from the interest that they are charging on these loans.
6. Does Repaying Payday Loans Help Me Develop Credit?
Most payday lenders are not accustomed to reporting on-time payments to credit bureaus, which means that repaying a payday loan will not usually help your credit score. However, there is still a chance that the payday lender may choose to report any payment defaults to the credit bureaus, which can damage your credit score.
